December 13, 2021/Cordros Report
EQUITIES
Trading in the local bourse kicked off the week with positive sentiments as investors bought MTNN (+7.1%). Thus, the benchmark index closed higher by 1.3% to 42,411.12 points. Accordingly, the Month-to-Date loss moderated to -1.9% while Year-to-Date gain increased to +5.3%.
The total volume of trades declined by 48.4% to 229.64 million units, valued at NGN3.29 billion, and exchanged in 4,426 deals. UNITYBNK was the most traded stock by volume at 48.32 million units, while NESTLE was the most traded stock by value at NGN846.76 million.
Analysing by sectors, the Oil & Gas (-0.9%), Banking (-0.5%), Insurance (-0.2%) and Consumer (-0.1%) indices declined while the Industrial Goods (+0.7%) index was the sole gainer of the day.
As measured by market breadth, market sentiment was positive (1.4x), as 22 tickers gained relative to 14 lost. MEYER (+9.1%) and ACADEMY (+8.5%) topped the gainers’ list, while NASCON (-6.8%) and CORNERST (-6.0%) recorded the most significant losses of the day.
CURRENCY
The naira was appreciated by 0.3% to NGN414.06/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 375bps to 14.0% in the absence of significant funding pressures on the system.
The NTB secondary market traded quietly as the average yield was unchanged at 4.5%. Similarly, mixed sentiments were recorded at the OMO segment as the average yield closed flat at 5.5%.
Trading at the Treasury bond secondary market ended the day mixed, albeit with a bullish tilt, as the average yield pared by 1bp to 11.4%. Across the benchmark curve, the average yield declined slightly at the short (-1bp) and long (-1bp) ends following investors’ demand for the APR-2023 (-3bps) and APR-2049 (-3bps) bonds, respectively; the mid segment remained unchanged.
